Shares of One97 Communications, the parent company of Paytm, jumped up to 6% to ₹1,186 on Wednesday, August 13, after the Reserve Bank of India (RBI) granted in-principle approval to its subsidiary, Paytm Payments Services Ltd (PPSL), to operate as an online payment aggregator. This allows PPSL to resume onboarding merchants, a process halted since November 2022 due to regulatory restrictions. However, the RBI has asked the company to conduct a thorough system and cybersecurity audit, with the report due within six months. If the company fails to submit the audit, the provisional approval will be withdrawn.
Initially, Paytm had downplayed the RBI’s ban, stating it only impacted new merchant onboarding. During that period, major shareholders like Antfin and Berkshire Hathaway exited their stakes, both incurring losses.
The RBI’s clearance follows Paytm’s strong financial performance in the June 2025 quarter, where it posted its first-ever Q1 profit of ₹123 crore, reversing a ₹839 crore loss year-on-year. Strong lending growth and tighter cost controls boosted EBITDA to ₹72 crore. Revenue rose 28% to ₹1,918 crore, with total income reaching ₹2,159 crore. The stock has gained over 17% in the last month.
